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Original-Research: Reply S.p.A. - from GBC AG

11.11.2025 / 10:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

Classification of GBC AG to Reply S.p.A.

Company Name: Reply S.p.A.
ISIN: IT0005282865

Reason for the GBC Italian Champions 2025
research:
Recommendation: BUY
Target price: EUR 175.00
Last rating change:
Analyst: Cosmin Filker, Matthias Greiffenberger, Marcel
Goldmann

Dear Investors,

This year, we are once again presenting Italian small and mid-cap companies
that we consider to be particularly promising in our study 'GBC Italian
Champions'. As was the case last year, our selection is highly diversified
across sectors and covers a wide range of company sizes. Nine companies from
last year's study have made it into this year's selection again. This means
that we are presenting four new investment ideas in this update to the
study.

This year, too, it is worth looking beyond national borders. While the
German capital market no longer seems to be an attractive option for many
companies, the Italian capital market remains as popular as ever. While IPO
activity in Germany has been at a low level for years, new companies are
constantly being listed on the Milan Stock Exchange. In Germany, new issues
have almost come to a standstill in recent years. After only three IPOs took
place in 2023, 2024 was not significantly better with five IPOs. In
contrast, the Milan Stock Exchange recorded unbroken high IPO activity with
35 IPOs in 2023 and 23 in 2024.

The greater willingness of Italian companies to go public is likely due,
among other things, to structural advantages. These include, for example,
multiple voting rights, which enable better control by the founders and good
protection against takeovers. This is a particularly good argument for
medium-sized companies to orient themselves towards the capital market. In
addition, issuers can benefit from tax advantages when going public. The
high status enjoyed by equities is also reflected in the planned Fondo
Nazionale Strategico investment initiative. Under the umbrella of the state
investment bank Cassa Depositi e Prestiti (CDP), over EUR700 million is to be
invested specifically in medium-sized and smaller Italian companies. Even
though the fund is aimed at institutional investors and qualified private
investors, it is expected that increased market liquidity and generally
higher demand for 'second-tier' equities could prove to be price drivers for
these stocks.

That is why, dear investors, we are presenting the GBC Best of Italy 2025
selection on the following pages. We present a series of promising companies
from a variety of sectors with attractive valuations, which we believe could
be an attractive addition to your portfolio.

The 'GBC Italian Champions Study 2025' contains assessments of the following
companies:

Casta Diva Group S.p.A. (ISIN: IT0005003782)
Cembre S.p.A. (ISIN: IT0001128047)
Energy S.p.A. (ISIN: IT0005500712)
Fine Foods & Pharmaceuticals N.T.M. S.p.A. (ISIN: IT0005215329)
Franchetti S.p.A. (ISIN: IT0005508574)
Lindbergh S.p.A. (ISIN: IT0005469272)
Lottomatica Group S.p.A. (ISIN: IT0005541336)
Redfish Longterm Capital S.p.A. (ISIN: IT0005549354)
Reply S.p.A. (ISIN: IT0005282865)
Sanlorenzo S.p.A. (ISIN: IT0003549422)
Siav S.p.A. (ISIN: IT0005504128)
Somec S.p.A. (ISIN: IT0005329815)

We hope you enjoy reading this and wish you success in your investments.

Cosmin Filker
Deputy Chief Analyst

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=8d5e6cc9ff7da8f6a533f91ebb0c2ab0

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Disclosure of potential conflicts of interest in accordance with Section 85
WpHG and Art. 20 MAR The following potential conflict of interest exists at
the company analysed above: (see individual studies); a catalogue of
potential conflicts of interest can be found at:

https://www.gbc-ag.de/de/Offenlegung
+++++++++++++++
Editorial deadline: 10/11/2025
Date and time of completion of the report: 10/11/2025 (04:00 p.m.)
Date and time of the first disclosure of the research report: 11/11/2025
(10:30 a.m.)

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